If you are shopping around for a mortgage, the staff at The Mortgage Gallery Rockingham can help. We assist clients with both commercial loans and home loans in Kwinana, Perth, Cockburn, Rockingham and the surrounding areas. We deal in fixed and in variable home loans offered from a large number of lenders and we are happy to help you navigate your options.

Should You Get a Fixed Mortgage or a Variable One?

There can be pros and there are also potential cons to locking in with a fixed rate mortgage.  When rates are low it does make people think twice about their best option.  If you are not locked in to a specific rate you may want to lock in when rates are low so you can take advantage and save money on interest rates.

Traditionally, a lot of people have signed up for variable mortgages to help them save money. Their attractive-looking interest rates often seem much lower than fixed rate mortgages and this can impact your mortgage payment and your budget in a big way. But it is important to realise that it is a bit of a gamble because that interest rate can change at any time.

The pros of a fixed rate home loan can include being able to count on a specific rate and this can help you with budgeting. Pros of a variable rate can be apparent when rates are lowered and you are not locked in to a higher rate, but because they are variable, you could find the unpredictability unsettling. Many people do. Many people like the idea of saving money with a certain type of mortgage but do not like the volatility and there is always the risk that rates will climb before you are able to get a chance to lock in.

When fixed rates are low, it is definitely tempting to lock in at a set rate.  Before you make any decisions, it is wise to consult with a mortgage specialist. Mortgage brokers can offer you a neutral opinion with a number of options available to you. Unlike banks who have a single set of options, mortgage brokers can review options with a number of different lenders and help you find one that will maximise your ability to save money and to minimise that unsettling feeling, too.

Get Informed About Mortgage Options

Whether you choose a fixed mortgage or a variable one, getting informed about your choices and crunching the numbers could help you make a choice that lets you sleep well at night. A mortgage broker in Cockburn, and the surrounding areas, can help you navigate the complexities of the choices and the process. When rates are low it is often wise to lock in, even if it is just for a short time. Do you have more questions? Contact us for answers.

The rise in homebuyer interest rates is something that a lot of people are talking about. The looming question is: could it be the high rates that are stopping some people from buying their first home sooner? The general consensus is that lack of a down payment is what slows most people down the most as the interest rate doesn’t really sink in for many first time buyers until the home buyer is ready to renew for the first time.  Many just want to get into the market at any cost so they take a home loan with a higher than average interest rate – but if you are entering the home buyers’ market for the first time, it is important to seriously consider interest rates.

Are You Serious About Getting the Lowest Possible Interest Rate on Your Home Loan?

The interest rate you are able to qualify for will have a direct impact on the quality of the property and your ability to afford the home you want, and of course it will also impact the duration in which you have to pay off the property. Being as informed as possible will save you money and can help ensure you look as good as possible on paper so that you can qualify for a mortgage. Keep the following in mind:

• Your interest rate does not just impact the overall cost of your new home; it affects your mortgage payment, too. It is worthwhile to shop around for the best interest rate possible. Crunch the numbers to see and assess the difference.
• Try to look as good on paper as possible. One of the reasons that first time homebuyers often pay such high interest rates is because lenders are unsure about their financial stability. A stable income, some savings, and a good payment history make a big difference.
• Keep in mind that you can pay things off sooner by paying more often than monthly. Fortnightly, weekly, or other accelerated home loan payment options can save you thousands.
• You should look above and beyond your local bank when shopping for a mortgage.  Talking to a mortgage broker could be a great way to get more options. Mortgage brokers in Cockburn, for instance, can help you check rates from numerous lenders as well as increase your chances of approval if you are in a lo doc or no doc scenario.
• The bigger the down payment you can come up with, the better.
• It is smart to get a pre-approval before you get your heart set on a property. Knowing what you will be approved for gives you more buying power and will lower the chances of disappointment.

Mortgage Brokers in Perth and Surrounding Areas Can Help

Do you want more information to help you as a first time homebuyer? If you want to avail of a home loan in Cockburn, Kwinana, Rockingham, Perth, or the surrounding areas, talk to The Mortgage Gallery Rockingham. We would be happy to help you review your options so you can get a good interest rate for your mortgage.

Have you read reports that talk about how WA’s poor new home sales outpace the nation? If so, you might be wondering if new home ownership is the way to go for you. There are some reasons why there is an increase of people looking into buying new homes, resulting in a rise in the improved new home sales in the Perth area.

Fighting the Perth Home Rentals Shortage

There is quite a lot of talk about a Perth rental shortage. People in the area are having problems finding vacancies and this is something that is generating new home inquiries and visits into sales centres where tenants want to look at their options.

Home owners have more choices among renters because when a listing goes up, there is a large queue. This can mean higher rents and the pick of the lot, reducing the risk to the landlord. As a result, many renters are having a hard time finding the right property and WA property investors are looking into expanding their monopoly and buying new homes so that they can convert them into investment properties / rental units.

There is a growing demand for rentals in Perth and the surrounding area. Where there is a demand, there will always be someone looking for a way to supply the demand. If you have the means to buy a new home as an investment, you could benefit greatly by renting out to people who are unable to secure financing for their own home at this time.

The rental shortage does mean that more renters are biting the proverbial bullet and getting into ownership sooner than they had planned so that they don’t have to continue to pay high rents that result in someone else lining their pockets.

Choose Your Mortgage Carefully!

Because the mortgage rates are up, you want to be a discerning mortgage shopper. Rockingham, Perth, Kwinana, Cockburn, and other area buyers who want to know all of their options for a new home mortgage can talk to us and get a wide variety of options from among our mortgage experts who can help you get a list of home loan options to choose from. Whether you want to buy a new home for yourself or as a rental property investment, we’d be happy to help you review your options.

1 May 2012

Reserve Bank of Australia

At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012. This decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated.

Growth in the world economy slowed in the second half of 2011, and is likely to continue at a below-trend pace this year. A deep downturn is not occurring at this stage, however, and in fact some forecasters have recently revised upwards their global growth outlook. Growth in China has moderated, as was intended, and is likely to remain at a more measured and sustainable pace in the future. Conditions in other parts of Asia softened in 2011, partly due to natural disasters, but have recently shown some tentative signs of improving. Among the major countries, conditions in Europe remain very difficult, while the United States continues to grow at a moderate pace. Commodity prices have been little changed, at levels below recent peaks but which are nonetheless still quite high. Australia’s terms of trade similarly peaked about six months ago, though they too remain high.

Financial market sentiment has generally improved this year, and capital markets are supplying funding to corporations and well-rated banks. At the margin, wholesale funding costs have declined over recent months, though they remain higher, relative to benchmark rates, than in mid 2011. Market sentiment remains skittish, however, and the tasks of putting European banks and sovereigns onto a sound footing for the longer term, and of improving Europe’s growth prospects, remain large. Hence Europe will remain a potential source of adverse shocks for some time yet.

In Australia, output growth was somewhat below trend over the past year, notwithstanding that growth in domestic demand ran at its fastest pace for four years. Output growth was affected in part by temporary factors, but also by the persistently high exchange rate. Considerable structural change is also occurring in the economy. Labour market conditions softened during 2011, though the rate of unemployment has so far remained little changed at a low level.

Recent data for inflation show that after a pick up in the first half of last year, underlying inflation has declined again, and was a little over 2 per cent over the latest four quarters. CPI inflation has also declined, from about 3½ per cent to a little over 1½ per cent at the latest reading, as the weather-driven rises in food prices in the first half of last year have, as expected, now been fully reversed. Over the coming one to two years, and abstracting from the effects of the carbon price, inflation will probably be lower than earlier expected, but still in the 2–3 per cent range.

As a result of changes to monetary policy late last year, interest rates for borrowers have been close to their medium-term averages over recent months, albeit tending to increase a little as lenders passed on the higher costs of funding their books. Credit growth remains modest overall. Housing prices have shown some signs of stabilising recently, after having declined for most of 2011, but generally the housing market remains subdued. The exchange rate remains high even though the terms of trade have declined somewhat.

Since it last changed the cash rate in December, the Board has maintained the view that the setting of policy was appropriate for the time being, but that the inflation outlook would provide scope for easier monetary policy, if needed, to support demand. The accretion of evidence over recent months suggests that it is now appropriate for a further step in that direction.

In considering the appropriate size of adjustment to the cash rate at today’s meeting, the Board judged it desirable that financial conditions now be easier than those which had prevailed in December. A reduction of 50 basis points in the cash rate was, in this instance, therefore judged to be necessary in order to deliver the appropriate level of borrowing rates.

Source:

http://www.rba.gov.au/media-releases/2012/mr-12-10.html

When considering your options in the WA real estate market, it is important to look at the big picture!

If you have read anything lately about Perth’s dropping home values in February, you might be cringing and worrying about whether or not investments are safe and whether or not now is or is not the time to buy property in Perth, Cockburn, Kwinana, Rockingham, or other parts of Western Australia. But reading the articles about Perth’s poor home values masking the comeback can help you see that while February 2012’s numbers were down, there was actually a rise in value over the three months leading up to the end of February.

We have seen a lot of fluctuations in numerous areas and several other areas in Australia have had three-month drops instead of the three-month rise that Perth has seen. It is important to consider the bigger picture and to consider more than just a daily or monthly snapshot when making real estate purchasing or selling decisions.

Fluctuating Markets are Common

Fluctuations are a thing we see a lot of as mortgage brokers! Perth is definitely a growing area in terms of real estate investment potential. It may not happen overnight but investing here could be a wise decision. Whether investing in your own home with home improvements (we can help you with a home loan!) or whether you want to buy a rental property as a real estate investment, we can help you secure a Perth mortgage. Brokers can present many options to you with a variety of lenders to choose from and can give you some industry information to help you make the right decision. Any investment can be a gamble, regardless of what the indexes tell you so keep that in mind and know that there are no guarantees.

Look at the WA Real Estate Big Picture

Looking at the big picture is important when considering real estate property investments. There could be a variety of factors that impact a specific month so this needs to be kept in mind when making decisions.

Instead of looking only at a daily or monthly index, look at more than a small window of information. What do things look like over the following few months? How soon do you plan to buy or sell? What are the mortgage rates right now?

If things are in flux right now, it might be wise to hang tight but it also might be wise to act quickly. Do some reading and talk to some property-investing experts so you can make educated decisions based on the big picture. Here at The Mortgage Gallery Rockingham, we are happy to help you look at all your options.

Thinking about buying rental properties in Perth? Read on for some food for thought…

If you are wondering if Perth is a good area to invest in for real estate, almost all signals seem to point to a resounding “Yes”. If you are already established as a resident and want to invest further in the area, it might be wise to invest in a rental property. With a major shortage of rental properties, rising rental unit costs, and a demand that could result in great profits for a property owner, it could be prudent to investigate your options.

As discussed on WA Today, Perth’s property market is worth watching. If it is worth watching, it might be very worth investing in! While the global financial crisis has hit the area, most financial experts are optimistic or, at the very least, cautiously optimistic about the state of the real estate industry in this part of Western Australia.

As Perth mortgage specialists, we know the importance of the right property investments and the right timing, especially when you have a mortgage payment (or two!) to cover. Talk to us about the variety of options available to you, whether you are buying for a primary residence or are buying an investment property.

If you are buying a Perth property that will not be your primary residence, things are going to be more complex to get you approved for a mortgage. The same can be said about switching your current residence into a rental property. The right advice can help you get the optimum mortgage for your needs as well as help you be aware of important matters related to your taxes.

What sort of Perth rental property are people investing in?

Some people are building apartments in their basements. Some people are buying up duplexes or triplexes so that they can live on site and keep an eye on things in the rental units. Others are converting larger homes into multiple units or renting homes with many rooms out to students. There is a lot to consider when deciding on buying a rental property but here are some things to consider:

1. Consider hiring a property manager if you will have many tenants, as it could be labour-intense to deal with repairs, maintenance, collecting rents, and so on.
2. Keep a substantial nest egg to cover unexpected expenses ranging from building repairs, late rent payments, or vacancies. It is not wise to rely on rent payments 100% to pay your mortgage. Lenders carefully weigh your perceived ability to handle the unexpected when deciding whether or not to approve financing.

Talk to reliable mortgage brokers. Perth offers you many potential lenders, and dealing with a mortgage broker can help you save time and effort by getting multiple quotes from one place.

When there is such a big gap between the cash rate and the bank rate, it gets a lot of tongues wagging. Bankers, are your ears ringing? Yes, a lot of people are talking and they are not being all that nice. When do people have great things to say about their bank? Not often, right?

Mortgage interest rates are higher, housing costs are higher, cost of living in general is higher in many cases. Companies are freezing wage increases, but yet the interest rate for your savings account is not climbing. It is not all that easy to make sound decisions in times like these.

The record-breaking gap and fear of the volatility of the market can make the idea of shopping for a mortgage or home loan really daunting. That is why it is so important to get solid advice from a skilled and knowledgeable person, such as a mortgage broker. Perth, Cockburn, Kwinana, and Rockingham residents who are interested in a mortgage or home loan can garner a lot of expertise from dealing with a mortgage broker at The Mortgage Gallery Rockingham who knows a lot about mortgages and home loans.

Perth mortgage brokers who deal with numerous companies and who also deal with unique situations can help you navigate the complex world of mortgages and home loans.

• Should you look for a fixed or variable rate mortgage and what is the ideal timeframe? It is not easy to choose. You want to be able to sleep at night without worrying about volatility but you also do not want to sign too high and cost yourself thousands more than necessary.
• Should you brace yourself and hold off on moving / buying / selling?
• What can you do to look better on paper to qualify you to get the optimal interest rate?
• Is now a good or a bad time to downsize or trade-up?
• Should you sell your rental property now?
• What is the best course of action to take?

A lot of factors need to, obviously, be considered when deciding about your personal situation. Many things will come into play to determine how many options you have. Your credit is a major factor, for instance. But regardless of your situation, the right research could make a big difference to your ability to feel as good and as safe as possible about your choices. If you are interested in a mortgage or home loan for the Perth area, we would be happy to talk to you.

Regardless of interest rates, life goes on. Being knowledgeable about your mortgage and / or home loan options will help you increase the likelihood of making the right decisions about your financial future. If you need mortgage advice, our Perth and Rockingham Mortgage Brokers would be happy to help you review your options.

WEEKEND COURIER

Friday, March 9, 2012

Rockingham Kwinana Chamber of Commerce president Justin Smith says the State Government needs to monitor local content in major mining and resource projects rather than splash around small amounts of funding.

Commerce Minister Simon O’Brien announced recently the Government would give $ 85,000 to help two leading industry bodies identify where local business could supply major projects.

The Association of Professional Engineers, Scientists and Managers of Australia will find ways for local engineers to get work in early phases of offshore energy projects.

Many metal fabrication and design workshops in the Kwinana and Rockingham industrial areas have struggled in recent years, with many contracts going to offshore firms.

But Mr. Smith said while funding was welcome, there would be better results if the Government completed rigorous “accountability and transparency” processes for local content used by the mining and energy companies.

“The mechanisms that facilitate the creation of work and therefore jobs, and that create domestic demand to halt the decline of the industry, require urgent rigorous processes,” he said.

“Initiatives such as minor funding and a further review of the already comprehensively reviewed Industry Capability Network of WA, which has been reviewed three times in three years, do not have the speed required at this time.”

A spokesman for WA Jobs from WA Resources campaign said the funding was boost for local groups and a “small step in the right direction.”

Mr. O’Brien said the local engineering and design industry was internationally competitive and there were many advantages to using local expertise.

“I will be signaling to oil gas proponents that use of the local engineering and design industry is a priority,” he said.

Sound Telegraph

February 29, 2012

Propell National Valuers CEO Bart Mead sheds light on the top 10 factors that affected property valuations in 2011.

1. Market Trends

The rising or falling of the market and the time the property has been on the market.

2. Similarity of properties

Valuers can draw on a history of local demand enabling easier assessment value.

3. The number of other properties on the market at the same time

When properties that are more comparable are available, the lowest price usually sells first.

4. The strength of the competition

A property valuation must reflect the competing current market.

5. Unusual features

These can add value, or may detract value if not attractive to others.

6. Pricing

If the property is typical of what sells in that suburb, it is likely to experience good demand and will sell

7. Presentation

Maintenance, garden care, suitability and cleanliness all contribute to the value of the property.

8. Location issues

Location factors such as bus stops, neighbouring housing and access to city roads can impact on value.

9. Asking prices versus sale prices

Many vendors judge value on the sale prices advertised, but there is often a gap between asking prices and actual sale prices achieved.

10. Renovation Potential

Depending on the property type and location, such capacity may be sought after or not. Someone wanting to demolish and rebuild will not pay extra for renovations to the existing building.